- April 23, 2021
- Posted by: admin
- Category: Finance & accounting, SBA Grants/Loan
The Restaurant Revitalization Fund (RRF) relief program application portal will be tested in a seven-day pilot period ahead of the application launch, the U.S. Small Business Administration (SBA) announced as it revealed key details of the program.
The historic Restaurant Revitalization Fund (RRF) represented a light at the end of the tunnel for restaurant executives around the country. The RRF has set aside $28.6 billion for the restaurant sector, which has faced significant challenges as a result of the COVID-19 pandemic. In 2019, $5 billion of the money will go to companies with gross receipts of $500,000 or less.
The RRF comes from the federal government and is tax-free, so you won’t have to repay it. The amount of assistance rendered is determined by calculating your business’s sales loss due to the pandemic. Millions of dollars may be provided to your restaurant to keep things running as smoothly as possible.
To note, if you applied and received any Paycheck Protection Program (PPP) loans, your award may be reduced by that amount.
To qualify for this grant, you must show that you have suffered a financial loss in the previous year. Whether you didn’t open until 2020 or weren’t in business for the whole year of 2019, your calculation will be different. Regardless, your award will allow for some relief for a year when restaurants saw a huge loss. You can spend the grant money on certain business-related expenses. Eligible expenses include payroll for employees, rent, utilities, operational expenses, etc. Other costs may include goods you needed to buy because of the pandemic.
Who can apply?
Eligible entities who have experienced pandemic-related revenue loss include:
• Food stands, food trucks, food carts
• Bars, saloons, lounges, taverns
• Snack and nonalcoholic beverage bars
• Bakeries (onsite sales to the public comprise at least 33% of gross receipts)
• Brewpubs, tasting rooms, taprooms (onsite sales to the public comprise at least 33% of gross receipts)
• Breweries and/or microbreweries (onsite sales to the public comprise at least 33% of gross receipts)
• Wineries and distilleries (onsite sales to the public comprise at least 33% of gross receipts)
• Inns (onsite sales of food and beverage to the public comprise at least 33% of gross receipts)
• Licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products
You can apply through SBA-recognized Point of Sale Restaurant Partners or directly via SBA in a forthcoming online application portal.